Key Takeaways
- The Reserve Bank of New Zealand (RBNZ) lowered its official cash rate to 2.75%, signaling a strong pro-growth stance and causing the New Zealand dollar (NZD) to hit a four-month low and the Australian dollar (AUD) to drop to a two-month trough. Markets are now anticipating a final rate of 2.5%.
- NVIDIA (NVDA) CEO Jen-Hsun Huang praised TSMC (TSM) as a "very good investment" and "one of the greatest companies in the history of humanity," while also confirming a partnership with Fujitsu (6702.T) and RIKEN for Japan's next-generation supercomputer system. Huang also addressed U.S.-China chip relations and the future of AI, announcing that GTC will be hosted in Washington, D.C. for the first time.
- The upcoming Shanghai Cooperation Organization (SCO) summit is set to host Chinese President Xi Jinping and Russian President Vladimir Putin, along with over 20 heads of government and more than 10 international organization leaders, as confirmed by China’s Assistant Foreign Minister.
- South Korea announced plans for a record government research budget of 35.3 trillion won in 2026, as President Lee aims to boost national research efforts.
- OpenAI confirmed the departure of its HR chief, Julia Villagra.
New Zealand and Australian currencies experienced significant declines today as central banks signaled a dovish outlook. The Reserve Bank of New Zealand (RBNZ) cut its official cash rate to 2.75%, a move indicating a strong commitment to boosting economic growth over inflation concerns. This decision sent the New Zealand dollar (NZD) to a four-month low and the Australian dollar (AUD) to a two-month low, with markets now pricing in a potential final rate of 2.5%. Westpac forecasts that the RBNZ will maintain a dovish stance until the economy fully utilizes its spare capacity.
In the technology sector, NVIDIA (NVDA) CEO Jen-Hsun Huang made several key announcements during his visit to Taiwan. He lauded TSMC (TSM) as an exceptional investment and a monumental company in human history. Huang revealed that TSMC's Rubin architecture will feature six brand-new chips. Furthermore, NVIDIA is partnering with Fujitsu (6702.T) in the development of Japan’s next-generation flagship supercomputer system, according to RIKEN.
Huang also addressed the complex U.S.-China chip landscape, stating that the decision on offering a successor to the H20 AI data center product to China is not NVIDIA's to make. He expressed deep appreciation for the U.S. approval to export the H20 chip to China, affirming it poses no national security concern and contains no security backdoors, despite recent concerns raised by China. The NVIDIA CEO also mentioned informing former President Trump about the importance of AI in relation to U.S. chip tariffs and that AI will progress with or without U.S. involvement, emphasizing support for the U.S. tech stack. In a significant move, NVIDIA will host its GTC conference in Washington, D.C. for the first time.
On the geopolitical front, China’s Assistant Foreign Minister confirmed that Russian President Vladimir Putin will attend the upcoming SCO summit. The summit is expected to be a high-profile event, with Chinese President Xi Jinping, over 20 heads of government, and more than 10 international organization leaders also confirmed to be present.
In other news, South Korea is planning a record government research budget of 35.3 trillion won for 2026, a move announced by President Lee to bolster the nation's research capabilities. Separately, OpenAI announced that its HR chief, Julia Villagra, is departing the company.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.